ATA: Driver turnover at truckload carriers hits 5-year low

Annualized turnover rates at large truckload fleets fell another 2 percentage points to 81 percent in the third quarter of 2016, the lowest level since second quarter 2011, according to the American Trucking Associations.    Annualized driver turnover rates at large truckload fleets slipped another 2 percentage points to 81 percent during the third quarter of 2016 following drops of 13 percentage points and 6 percentage points in the first and second quarter, respectively, according to the latest figures from the American Trucking Associations (ATA).
   ATA noted the third quarter driver turnover rate was the lowest since the second quarter of 2011.
   The first quarter 2016 decrease for large truckload fleets followed two consecutive quarters above 100 percent, the first such streak since 2012. Average churn rate for large truckload carriers stood at 93 percent for the full year in 2015.
   For small truckload carrier fleets – those with less than $30 million in annual revenues – ATA said the annualized driver turnover rate rose 1 percentage point to 80 percent after falling 9 points the previous quarter. Turnover at small truckload operators averaged 79 percent in 2015.
   The turnover rate at less-than-truckload carriers remained significantly lower than at their truckload counterparts, falling 3 percentage points to 9 percent.
   “Ongoing softness in the freight economy has contributed to an easing of the market for drivers and a reduced turnover rate,” ATA Chief Economist Bob Costello said in a statement. “Since the end of the third quarter, we have seen signs that we may be reaching the end of the poor inventory cycle that has driven a lot of the weakness in the freight economy, so we may see turnover rates rebound in the months to come.
   “Despite the falling turnover rate, carriers continue to report difficulty finding well-qualified drivers, a problem that will not only persist, but which will get worse as the freight economy improves,” he added.
   ATA published a report last October estimating the shortage of drivers in the trucking industry would reach 48,000 by the end of 2015 and could grow to as many as 175,000 by 2024.